Which of the Following Statements About the Indirect Method of Presenting

question 29

Multiple Choice

Which of the following statements about the indirect method of presenting cash flow from operations is NOT true?

• A) The direct and indirect methods give the same cash flow from operations.
• B) Australian companies do not need to report information about the indirect method.
• C) Depreciation expense is added back to operating profit in the indirect method.
• D) Decreases in accounts payable are deducted from operating profit in the indirect method.

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Definitions:

Anterograde Amnesia

An inability to form new memories.

New Memories

The process of forming and storing new information in the brain, which can involve converting short-term memories into long-term memories.

Inability

The state of lacking the power, means, or opportunity to accomplish a task or action.

Retrograde Amnesia

A loss of memory-access to events that occurred before a particular point in time.